If MUx/Px > MUy/Py, the consumer can increase utility by buying less of good y, which means the MUy will rise

The rule of reason was an antitrust law guideline that emphasized the importance of ________ over ________

a. price; quantity b. quantity; price c. law; the economy d. size; behavior e. behavior; size

Assume that the central bank sells government securities in the open market. If the nation has highly mobile international capital markets and a fixed exchange rate system, what happens to the real risk-free interest rate and current international transactions in the context of the Three-Sector-Model? State your answer after the macroeconomic system returns to complete equilibrium

a. The real risk-free interest rate falls and the current international transactions balance becomes more negative (or less positive). b. The real risk-free interest rate rises and the current international transactions balance becomes more negative (or less positive). c. The real risk-free interest rate and the current international transactions balance remain the same. d. The real risk-free interest rate rises and the current international transactions balance remains the same. e. There is not enough information to determine what happens to these two macroeconomic variables.